IMPACT UPDATE 2015

IMPACT UPDATE
2015

CONTENTS

COVER PHOTOS CREDIT: NEW BRITAIN PALM OIL LIMITED & RSPO/ JONATHAN PERUGIABACKGROUND PHOTO CREDIT: NEW BRITAIN PALM OIL LIMITEDRSPO inbrief

01
RSPO in2015

03
PHOTO CREDIT: RSPO/ JONATHAN PERUGIAMembership

Certification
Progress

RSPO Next

ISEAL
Alliance

Focus onlabourconditions

FFB legality
and traceability

04 06

New
initiatives andchallenges

17

18 19
PHOTO CREDIT: NEW BRITAIN PALM OIL LIMITED

Our impact
in numbers:
Base date

Glossary

Contact
RSPO

27 30 31

22 24

RSPO IN
BRIEF

Complaints
procedure

Trademarkand market
outreach

10 12
Certification
at landscapelevel - thejurisdictional
approach

Our vision is to transform themarket by making sustainablepalm oil the norm.

HCV (assessor
scheme/compensation)

20 21
Enhancingtransparency
and enforcing
accountability

The Roundtable on Sustainable Palm Oil (RSPO) is amulti-stakeholder non-profit organisation that works
to promote the growth and use of sustainable oilpalm products through cooperation within the supply
chain and open dialogue between its stakeholders.
Roundtable members represent every link in thepalm oil supply chain: oil palm growers, palm oilprocessors and traders, consumer goods manufacturers,
retailers, banks and investors, environmental
conservation NGOs and social development NGOs.

Haze inSoutheast
Asia

25 26

About The RSPOAnnual update
reportRSPO publishes a full Impact Report every
two years. From 2015, an annual update will
be produced to make sure stakeholders are
kept informed. This document contains thelatest news on progress from 1 July 2014 –30 June 2015 and should be read in
conjunction with the full RSPO 2014 Impact
Report. The report is available fromwww.rspo.org/resources and contains
in-depth information about RSPO, its
governance structures and initiatives.
The next Impact Report is scheduled for
publication in Q4 2016.

RSPO IMPACT UPDATE 20151

PHOTO CREDIT: RSPO/ JONATHAN PERUGIA2RSPO IMPACT UPDATE 2015

RSPO
IN 2015

Membership
Certification ProgressComplaints Procedure
Trademark and Market Outreach

RSPO IMPACT UPDATE 2015

3

RSPO IN 2015

MEMBERSHIPPHOTO CREDIT: RSPO/ JONATHAN PERUGIARSPO has a total of 2,282
members in 78 countries. Overthe past year, we have seen astrong membership growth inpalm oil buying sectors andmarkets. This includes a 25%
increase in consumer goods
manufacturers, a 12% increasein processors and traders, andan 11% increase in retailer
membership.

4

RSPO IMPACT UPDATE 2015

It is notable that markets outside the EU are also
coming on board. In the last year, US membershiphas increased by 55% and Australian membershipby 54%, while membership numbers continue toincrease in the large European markets.
In addition, we are pleased to note that the
number of palm oil grower members has
increased by almost 6%. These include new
growers in Latin America and community growergroups in Thailand.

RSPO IN 2015

MEMBERSHIP

Ordinary membership (1,151 as at 30 June 2015)
Social and development
NGOs, 12

Bank & Investors, 13

Environmental NGOs, 29
Retailers, 59
Oil palm
growers, 134

Consumer goods,
manufacturers,
513

Processors andtraders, 391

rs
he
Ot

Au

st
ra

lia

80

89
um

sia
ne
do

Be
lgi

103

113
y
Ita
l

In

M

al

ay
sia

109

127
ce
Fr
an

138
St
at
es
ite
d

Un

Ne
th

er
la

nd

s

an
y
rm
Ge

Ki Un
ng it
do ed
m

146

279

330

768

Top 10 nationalities of membership (Total membership 2,282 as at 30 June 2015)

RSPO IMPACT UPDATE 2015

5

RSPO IN 2015

certification
progress

PHOTO CREDIT: DAABON GROUP

PHOTO CREDIT: RSPO/ JONATHAN PERUGIACERTIFIED PALM OIL GOING GLOBAL:

Thailand
GuatemalaCambodia
Ivory Coast

Ecuador

Ghana

Colombia
Papua New Guinea
BrazilMalaysia
Indonesia
Solomon Islands
Madagascar

13 countries now have RSPO certified producers

6

RSPO IMPACT UPDATE 2015

RSPO IN 2015

certification
progress

The total global certified area increased by 9% over the last year. The main palm oil producing countries
of Indonesia and Malaysia continued to make headway, but we were also pleased to note a 37% increasein certified area in Africa, and that more than 30,000 hectares successfully passed audits in the rest of
Asia-Pacific.
Certified area by region (Total 3,280,474 ha)

1,469,839

2014

1,525,734

2015

1,363,518
1,181,589

182,525 213,557

138,470 145,410
20,234 32,255

Indonesia

Malaysia

Rest of Asia-pacific

Latin America

AfricaNote to data: Figures include certified areas, including those where eTrace registration has expired, but excluding
withdrawn and suspended certifications. As the RSPO website draws on eTrace data, some discrepancies may occur inthis report. The figures are also inclusive of schemed smallholders certified under group certification schemes. Figuresfor 2015 are inclusive up to 30 June 2015.

RSPO IMPACT UPDATE 2015

7

RSPO IN 2015

certification
progress

Expanding our
regional outreachTo support the increasing number of grower
members outside Asia, we are expanding our
regional outreach.
Latin America is the second largest palm oil
producing region in the world, contributing
5.7% of global palm oil. The 26 grower
members in the region manage more than
250,000 hectares of oil palm plantations
between them, and RSPO has also seen greatinterest among smallholders who produce
almost 40% of the region’s palm oil. With
such growing interest, and with certifications
expected for 13 new plantations and millsin 2015, RSPO aims to ensure that adequate
support is available.

PHOTO CREDIT: RSPO/ JONATHAN PERUGIA

To meet the increasing demand for
certification, RSPO has engaged a technicalmanager for the region. The role will include
the development of local capacity in the RSPO
standard and the application of concepts such
as High Conservation Values and Free, Priorand Informed Consent (FPIC).

PHOTO CREDIT: RSPO/ JONATHAN PERUGIA

We are also expanding outreach to Africa. In
Q3 2015, RSPO will be hosting seminars andevents in the region, including an Open Day,to support the Africa Sustainable Palm Oil
Forum in Ghana.

PHOTO CREDIT: DAABON GROUP

8RSPO IMPACT UPDATE 2015

RSPO IN 2015

certification
progress

Growth in independent
smallholder
certification
Our efforts to include independent smallholders incertified supply chains continue. We congratulate
the 762 smallholders who achieved certification in
the past year. However, we recognise that there is
still tremendous amount of work ahead to ensurethat all independent smallholders – numberingin the hundreds of thousands – can secure thebenefits of certification.
The RSPO Board of Governors has approved theformation of the RSPO Smallholder Support Fund.
The Fund is specifically intended to provide direct
assistance to oil palm producing smallholders to

help them attain RSPO certification. Applicants
can be Group Managers of independent
smallholders or other supporting agencies.
The fund also supports the development ofcertification systems, tools, and other related
mechanisms that may facilitate or simplify RSPO
certification for smallholders.
To date, the Fund has supported twelve initiatives
around the world, distributing approximately
600,000 Euros to promote certified sustainablepalm oil production. The twelve initiatives funded
comprise 9,421 smallholders over 43,354 hectaresof land in Ghana, Nigeria, Thailand, Honduras andIndonesia.

Number of independent smallholders under group certification (as at 30 June 2015)
2012

2013

2014

2015

1151

658 658

423 423 423
349

72
0

108

142

0
Indonesia

Malaysia

Thailand

Note to data: Just over 2,000 smallholders from FELDA Segamat scheme smallholders were included in the 2014 Impact
Report as they were certified under the group certification scheme. However, for the sake of accuracy, we have decided
to exclude these in future reporting.

RSPO IMPACT UPDATE 2015

9

RSPO IN 2015

Complaints
procedure
The RSPO Complaints
Panel continues tofacilitate solutions tocomplaints about RSPO
members by other members
or external parties.
As of 30 June 2015, 15 complaints were recorded
as either under review or pending an action plan.
Seven new complaints were recorded during thereporting period. Of the seven cases five werefrom Indonesia, one from France and one from
Malaysia. Land and customary rights, as well as
issues related to Free, Prior and Informed Consent(FPIC), continue to be the most prevalent issues.
Following the 2014 complaints system revamp,
recommendations are being implemented in
the following areas: governance, management,
procedures, public communication andinstitutional vitality. A new Independent Appeals
Mechanism is also being developed.

PHOTO CREDIT: RSPO/ JONATHAN PERUGIA

Complaints by country (2009-2015)
33

10
5

Indonesia

10

Malaysia

RSPO IMPACT UPDATE 2015

Liberia3

France2
PNG

1Cameroon

RSPO IN 2015

Complaints
procedureTypes of Complaints

Human rights
2

Code of Conduct
3

Burning1

CB credibility
3
NPP
3
Other
6

FPIC/NCR
23

HCV
13

Complaints received and closed by year
Complaints Received

Complaints Closed

18 •
16 •
14 •
12 •
10 •
8•
6•
4•
2•
0•

2009

2010

2011

2012

2013

2014

RSPO IMPACT UPDATE 20152015
(30 June)

11

RSPO IN 2015

Trademark andmarket outreach2015 is a critical year for RSPO in terms of market
uptake. A large group of retailers and consumer goods
manufacturers has set December 2015 as a target date forachieving 100% CSPO in all products.
The proportion of CSPO sold as a percentage of CSPO produced has remained relatively stable over thelast five years – just over 50%. However, we have seen a huge increase in demand for physical CSPO as
opposed to palm oil covered by the Book & Claim system. In 2014, sales of physical CSPO increased by
56%, while Book & Claim sales dropped by 1.5%. We believe this trend will continue and be boosted byour members’ end of year commitments.
Sales of CSPO (MT)CSPO Sales through SG, MB

CSPO Sales through B&C

Total
5,348,666
Total
4,513,273
Total
3,479,415
Total
2,490,526

Total
4,452

Total
343,857
98,044
245,813

4,452
0
2008

2009

2,432,258
1,551,017

984,138

831,010

Total
1,281,134

2,495,277

438,515

2,962,256

2,916,408

1,659,516

842,619
2010

2011

2012

2013

2014

While market uptake of CSPO is progressing steadily on a global scale, there is considerable variance
between regions. As reflected in RSPO membership numbers, Europe accounts for a significantly higher
share of the palm oil uptake compared to other regions.
To be able to allocate our resources effectively, RSPO is developing a more regional approach based
on uptake targets for each region. By 2020, we aim for Europe to achieve 100% CSPO, Malaysia andIndonesia 50% each, India 30% and China 10%. No target has yet been set for the rest of the world.

12

RSPO IMPACT UPDATE 2015

RSPO IN 2015

Trademark andmarket outreach

REGIONAL UPTAKE BY RSPO MEMBERS FOR PHYSICAL PALM OIL 1

To
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(2
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(1 gar
00 d
% or
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Includes members reporting volumes and TBPs in categories other than their reporting (registered) category(all figures in ‘000 tonnes)

13

6,484

50

6,434

5,013

5,063

1%

50%

78%

AHEAD

INDONESIA 3

477

1

476

476

477

0%

50%

100%

TARGET MID

0

-

-

-

-

-

ND

50%

ND

BEHIND

19

6,405

927

5,478

4,542

5,469

14%

50%

85%

AHEAD

MALAYSIA 1

56

-

56

42

42

0%

50%

75%

AHEAD

APPLIEDTO ALLPRODUCTSCOMBINED

0

-

-

-

-

-

ND

50%

ND

BEHIND

71

5,330

841

4,489

3,947

4,788

16%

100%

90%

BEHINDEUROPE 183

7,894

1,172

6,722

6,132

7,304

15%

100%

93%

BEHIND

31

259

111

148

148

259

43%

100%

100%

TARGET MID

7

986

-

986

732

732

0%

30%

74%

AHEAD

INDIA 2

43

-

43

24

24

0%

30%

55%

AHEAD

0

-

-

-

-

-

ND

30%

ND

BEHIND

2

69

13

56

37

50

19%

10%

73%

AHEAD

CHINA 3

24

0

24

22

22

0%

10%

93%

AHEAD

0

-

-

-

-

-

ND

10%

ND

BEHIND

15,071651

14,420 10,561 11,212

4%

0%

74%

AHEAD

2,387

209

2,178

2,045

2,254

9%

0%

94%

AHEAD

181

22

159

158

179

12%

0%

99%

AHEAD

(CPO+PKO+DRV)

68
REST OF40
THE WORLD
01

Excludes Book & Claim

Processors & Traders2

Certified and uncertified

3

MB+SG+IP (excluding B&C)

Consumer Goods Manufacturers

4

Based on ACOP data

5

Based on TBPs

Retailers

RSPO IMPACT UPDATE 201513

RSPO IN 2015

Trademark andmarket outreach

Enhancing outreach to
Asian consumer markets
RSPO has strengthened its engagement withthe largest consumer markets – China, India
and Indonesia – over the last four years. In
2015, we will formalise our presence throughoutreach offices in India and China.

As the world’s largest economy, Europe hasan opportunity and responsibility to movethe global economy onto a more sustainable
path. The continent is the third largest global
import market for palm oil and home to someof the world’s biggest brands and companies.
With increased public awareness, industry
demand and supply chain accessibility, there isin Europe the potential to create a new model
for a global sustainable palm oil supply chain.

RSPO already has an office in Indonesia,
and we have also stepped up our consumer
engagement in the country. We supported
the #beliyangbaik campaign launched by
WWF Indonesia in March 2015. This received
positive attention in Indonesian media andreached close to 80,000 people on Twitter.

RSPO has pledged to help support and build
a 100% CSPO European market by 2020. As
of June 2015, industries in eight of the EU25 countries had made commitments toachieve 100% CSPO with target dates ranging
between 2014 and 2020. RSPO has publisheddata on national initiatives and progress in
the report “A Shared Vision”. This can be
downloaded from www.rspo.org/resources.

We are now engaging with other partners
and consultants to explore the attitude ofIndonesian consumers to palm oil in orderto enhance our awareness activities.

Consumer outreach in the EU remains a priority,
and a growing number of companies are using
the RSPO trademark on their packaging.

Ot
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s

10

nd
Po
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14

n
ai
Sp

y
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Un

RSPO IMPACT UPDATE 2015

Un

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ay
sia

Fr
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ite
d

rth
Ne

Th
e

14

M
al

s
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um
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Be

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an
y

15

22

24

24

24

27

28

54

90

Trademark licenses by country

RSPO IN 2015

Trademark andmarket outreach

Current CSPO commitments in Europe
DENMARK
100% CSPO COMMITMENT = 2016
ADDITIONAL TARGETS = 2018

NORWAY
100% CSPO COMMITMENT = 2015
ADDITIONAL TARGETS = 2018

NETHERLANDS
100% CSPO COMMITMENT = 2015
PROGRESS REPORTED

Sweden100% CSPO COMMITMENT = 2015

UNITED KINGDOM
100% CSPO COMMITMENT = 2015
PROGRESS REPORTEDBELGIUM

Germany
austriaswitzerland

100% CSPO COMMITMENT = 2015
ADDITIONAL TARGETS = 2020100% CSPO COMMITMENT = 2014
PROGRESS REPORTED
ADDITIONAL TARGETS = VARIOUS DATESFRANCE
100% CSPO COMMITMENT = 2015
ADDITIONAL TARGETS = 2020

KEY

NOTE:
NO CSPO COMMITMENTS
TOP 12 COUNTRY BY VOLUME OF PALM OIL IMPORTS, BUT NO CSPO COMMITMENT
100% CSPO COMMITMENTS
100% CSPO & ADDITIONAL TARGETS

The country-specific sections on the following pages are
based on conversations and survey responses of thoseworking in individual countries on sustainable palm oil
initiatives, as well as desk research, to assess the current
state of play in CSPO across Europe.
They do not represent the views of RSPO.

Our online partnership with The Guardian in the UK has also helped us raise the profile of CSPO. RSPO
mentions have grown by 77% over the course of the main campaign, and perceptions of and responses
to RSPO continue to improve.

RSPO IMPACT UPDATE 201515

PHOTO CREDIT: NEW BRITAIN PALM OIL LIMITED16

RSPO IMPACT UPDATE 2015

NEW
INITIATIVESAND
CHALLENGESRSPO Next
ISEAL Alliance
Certification at landscape level - the jurisdictional approach
HCV (assessor scheme/compensation)
Focus on labour conditions
FFB legality and traceability
Enhancing transparency and enforcing accountability
Haze in Southeast Asia

RSPO IMPACT UPDATE 201517

NEW INITIATIVES AND CHALLENGESRSPO NEXTThe initiative was developed in responseto stakeholder concerns that some aspectsof the 2013 RSPO P&C review did not raise
the bar high enough. A number of external
initiatives and individual policy commitments
were seeking to address this, and our Boardof Governors found it critical that RSPO played
a role in consolidating these additions.

PHOTO CREDIT: RSPO/ JONATHAN PERUGIARSPO Next is a voluntaryaddendum to RSPO's existing
Principles and Criteria(P&C), and one of the mostwidely discussed initiativesof the past year. RSPONext gives members thathave met and exceeded thecurrent P&C requirements
the opportunity to go one
step further and voluntarily
submit their practices for
rigorous third party review.

RSPO Next offers a set of additional indicators,
beyond RSPO certification, that members
need to achieve in order to prove they workwith best practices in key environmental
and social dimensions. A working groupof Board Members (comprising growers,
processors and traders, retailers and socialand environmental NGOs) developed guidanceon the themes: No Deforestation, No Fire,No Planting on Peat, Reduction of GHGs,
Respect for Human Rights and Transparency.
RSPO NEXT supports credible, on-the-ground,third party verification of actions taken on theseissues (e.g. relating to peatland development, or
protecting of the rights of indigenous peoples).
Each category has implementation requirementsthat will be audited for compliance by an RSPOapproved third party accredited certification
body. Reviews will require an assessment of
the scope and content of the company's policy,
followed by an on-the-ground assessment ofactions taken at the palm oil mill and supply
base level. An additional set of requirements
will guide claims and ensure transparency andprogress towards the goal of 100% compliance.
These are being developed following RSPO
procedures as part of a parallel process.
At the time of reporting, RSPO Next isundergoing public consultation. We expect
to table a final draft at the upcoming Boardof Governors meeting in November 2015.

18

RSPO IMPACT UPDATE 2015

NEW INITIATIVES AND CHALLENGES

ISEAL
ALLIANCE

PHOTO CREDIT: RSPO/ JONATHAN PERUGIAISEAL is the global membership association for sustainability standards. RSPO joined as an associate
member of ISEAL in 2013. Since then, RSPO has benefitted greatly from a network of like-minded
standards, generating insights and strategies that have enabled us to continue improving alongside thelatest innovations and best practices. In May 2015, RSPO was approved as meeting the requirements forfull membership, joining a growing number of sustainability standards that are driving positive social andenvironmental change in multiple sectors.
The full membership status recognises that RSPO Standards have demonstrated overall compliance with
ISEAL’s Code of Good Practice. As a full member, RSPO complies with the ISEAL Standard Setting Codeand we are making good progress towards compliance with the Impacts Code and Assurance Code thatcame into force in 2010 and 2012, respectively.

RSPO IMPACT UPDATE 201519

NEW INITIATIVES AND CHALLENGES

Certification atlandscape level –the jurisdictional
approach
As part of the RSPO visionof making sustainable palm
oil the norm, and to ensurethat the impact of palm oil
development can be assessed
at a larger landscape level,
we are looking at innovative
ways to scale up certification.
At the end of 2014, we began
an ambitious long-term
initiative known as the‘jurisdictional approach’. Thisis aimed at stakeholder-driven
certification at state level,
and we have already initiatedoutreach in Southeast Asianstates where palm oil has alarge footprint.

The approach conceptually involves two
preparatory phases:
Phase 1 involves comprehensive landscapemapping. Local stakeholders work together
to categorise high conservation value (HCV)and high carbon stock (HCS) areas as well as alocalised free, prior and informed consent (FPIC)
interpretation to identify customary or indigenous
land use and access rights. Combined, these form
the basis for a decision on no-go zones for further
development. In addition, states are required to
identify areas where non-certifiable development
has taken place after the RSPO cut-off dates, andthe resulting liability is calculated using the RSPO
compensation matrix. Once these mapping efforts
have been completed, a monitoring system shouldbe put in place. This could include advanced
satellite imagery combined with stakeholder
monitoring on the ground. On completionof this phase, which would be expected tolast approximately 2–3 years, a conditional
certification may be issued.
Phase 2 is likely to take longer – possibly
around five years. During this time, operational
considerations are tackled with individual growers
and smallholder groups through extensive
outreach and capacity building. Aspects addressed
include working conditions, good agricultural
practice, mill effluent management and otherissues covered in the RSPO P&C. Full certification
is awarded once all operations in the jurisdiction
are deemed to be in compliance with the P&C.
As of mid-2015, we have made good progresswith two jurisdictions. The state of Sabah in East
Malaysia has already established a semi-formal
stakeholder platform to guide the initiative. In
addition, there are plans to start mapping thestate using an advanced satellite imagery system
known as LIDAR, which could potentially map every
tree in the state. The state of Central Kalimantan
in Indonesian Borneo has also made initialcommitments to the initiative, and it is expected toprogress with further planning at the end of 2015.

20

RSPO IMPACT UPDATE 2015

NEW INITIATIVES AND CHALLENGESHCV (assessor scheme/
compensation)

PHOTO CREDIT: AGROPALMA

PHOTO CREDIT: RSPO/ JONATHAN PERUGIAPHOTO CREDIT: RSPO/ JONATHAN PERUGIAHigh Conservation Value (HCV) assessment is a critical aspect of the RSPO P&C as well as the new plantingsprocedure. To date, about 5% of all certified area has been set aside as designated high conservation value
area. To ensure that palm oil developments do not destroy valuable biodiversity, wildlife habitat or damage
sites of cultural importance, we are constantly seeking to enhance the methodology and its implementation.

New assessor licensing scheme
In the past, RSPO approved all HCV assessors, and have worked closely with the HCV Resource Network(HCVRN) to improve the quality control of assessments. In October 2014, the HCVRN launched alicensing scheme that raises the bar still further for assessors. The scheme ensures that methodologies
are consistent, follow a standardised procedure and that HCV reports are compiled using the latest data
and are useful for companies in planning their HCV management.
Only for the New Planting Procedures, the RSPO now requires all assessors to be licensed under the HCVRN.

remediation and compensation procedure
In early 2014, RSPO launched the one-year staged implementation of the Remediation andCompensation procedure designed to address cases where RSPO palm oil producer members were
found to have cleared land without conducting the required HCV assessment (See RSPO Impact Report2014 pp. 44–45 for more information).
RSPO takes such breaches very seriously, but prefers to work on constructive solutions rather than to
exclude producers from the certification system. Over the implementation stage, all palm oil producer
members were required to map their potential liabilities and submit these to the RSPO Secretariat. A
series of workshops took place over the year in Bogotá, Jakarta and Kuala Lumpur to ensure that all
producers were familiar with the requirements.
At the deadline of these submissions on 9 May 2015, 15 producers had yet to submit the Disclosure of
Liabilities and were suspended with effect from 9 June 2015. These producers were given three months
to submit the Disclosure before their membership was terminated. At the end of the suspension period,
14 producers had submitted the required disclosures, and one still remain suspended.

RSPO IMPACT UPDATE 201521

NEW INITIATIVES AND CHALLENGES

focus onlabour conditions
The RSPO Principles & Criteria (P&C) are aligned to the ILO Core Labour
Standards. This requires all certified growers to guarantee decent andsafe working conditions and fair pay, to safeguard the right to collective
bargaining, and to ban bonded labour and child labour.
In 2014 and 2015, a series of media stories and NGO reports pointed topossible concerns around compliance with these indicators in Malaysia –particularly focused on the conditions of foreign workers.

PHOTO CREDIT: NEW BRITAIN PALM OIL LIMITEDThe Complaints Panel reviewed these reports and recommended that an
immediate review be carried out of these claims – with particular focus on
the methodology applied by auditors. Findings and recommendations will beannounced when completed and covered in the next RSPO Impact Report.

Promoting dialogue with unions inIndonesia
We have also been active in promoting dialogue on core labour standards
beyond Malaysia. In June 2015, we hosted a workshop in Medan, Indonesia,
to initiate dialogue between plantation companies and labour unions.
PHOTO CREDIT: NEW BRITAIN PALM OIL LIMITED

Facilitated by Surya Tjandra from Atmajaya University in Jakarta, the two-day
workshop consisted of panel and group discussions. These sessions enabled
participants to discuss the challenges associated with plantation practices
and how these affect labourers, employers and the government.
The workshop drew a large number of attendees, with 73 representatives
from labour unions, growers, government agencies, non-profit organisations,academia and the media.

PHOTO CREDIT: RSPO/ JONATHAN PERUGIAThe purpose of the workshop was to understand and create a common
approach to fair labour relations in oil palm plantations. The workshop also
aimed to kick-start a dialogue among stakeholders on freedom of associationin Indonesian palm oil plantations.
The workshop was jointly organised by Organisasi Penguatan dan
Pengembangan Usaha-usaha Kerakyatan (OPPUK), Oxfam Indonesia, FNV
Mondiaal, Serikat Buruh Perkebunan Indonesia (SERBUNDO) and the RSPO.

PHOTO CREDIT: RSPO/ JONATHAN PERUGIA22RSPO IMPACT UPDATE 2015

RSPO IN 2015

focus onlabour conditions

More companies phase out Paraquat
The use of chemicals remains a serious health and safety issue, particularly
the herbicide commonly referred to by its trade name Paraquat. Several
stakeholders have raised concerns about the handling of the chemical due
to its high toxicity levels. RSPO P&C provide guidance that Paraquat can only
be used in ways that do not endanger health or the environment. Individual
growers must work towards minimising and eliminating the use of Paraquatand document that they are actively seeking alternatives. In addition, theP&C have strict requirements on the safe handling, storage and disposal ofpesticides.

PHOTO CREDIT: NEW BRITAIN PALM OIL LIMITEDIn addition, the past year has also seen a significant number of RSPO grower
members voluntarily phasing out Paraquat in response to stakeholder
concerns. These growers have primarily used glyphosate and glufosinate
as replacements. Growers who have already banned Paraquat include
Agropalma, DAABON, Hap Seng Plantations, IOI, Olam, Musim Mas, United
Plantations, REA Holdings, SIAT, Sime Darby (including NBPOL) and Wilmar.
Other companies, such as Bumitama, Indofood Agri have committed to aphase-out over the coming years.

PHOTO CREDIT: FELDA GLOBAL VENTURES HOLDINGS BERHADPHOTO CREDIT: FELDA GLOBAL VENTURES HOLDINGS BERHADPHOTO CREDIT: RSPO/ JONATHAN PERUGIARSPO IMPACT UPDATE 201523

NEW INITIATIVES AND CHALLENGESFFB legality andtraceability

PHOTO CREDIT: RSPO/ JONATHAN PERUGIAPHOTO CREDIT: RSPO/ JONATHAN PERUGIAIn addition to identity
preserved palm oil, the RSPO
system currently allows forthe mass balance supply
chain model, where certified
palm oil is mixed with noncertified oil, and Book & Claim,a certificate trading system.
Since these systems do not
exclude certified growers andtraders from mixing oil fromunknown sources, RSPO has
identified this as a potential
credibility risk.
The main problem is that plantations, particularly
those owned by individuals or independent
smallholders, may expand into areas that are notlegally zoned for agricultural cultivation. These
areas include – but are not limited to – HCV areas,
national parks, reserve forest and production
forest. Oil palm fresh fruit bunches (FFB) that
may have derived from such questionable areas
may also therefore be compromised in terms oftraceability and legality.

24

RSPO IMPACT UPDATE 2015

Under the RSPO P&C 2013, Indicator 4.1.4
states clearly the need for clear and consistent
implementation and monitoring of FFB sourced
from third parties. In 2014, we established a
FFB Legality and Traceability Taskforce (FLTT) tostrengthen these standards all along the palm
oil supply chain. The FLTT will work to ensure
traceability from FFB production to mill. Theirwork will supplement that of our Trade andTraceability Taskforce, which covers the productfrom palm oil mill to consumer.
The FLTT is tasked with providing
recommendations on legal and traceable FFB
sourcing. It will also support and monitor trialsof the application of the controlled FFB sourcing
mechanism. The Taskforce will seek to develop
guidance to RSPO Criteria 4.1.4 as well as to theimplementation of RSPO Criteria 2.1 for externalsources.
As the initial issues were linked to Indonesia, thetask force will prioritise a study in that country.
However, RSPO will also review whether the issue
extends to the rest of the world.

NEW INITIATIVES AND CHALLENGES

enhancing transparency
and enforcing
accountability
Transparency and accountability are critical aspects of sustainability. When stakeholders have access toadequate information, the basis for engagement and the capacity to monitor continuous improvement
become stronger.
According to the RSPO Code of Conduct, all members are required to produce an annual communicationof progress (ACOP). In 2011, the definitions of the types of progress on which members were required
to report were strengthened by the inclusion of quantitative information on all aspects of land use andcertification, allowing RSPO to better monitor progress and impact.
However, a large number of members have continually failed to submit their annual communications ofprogress despite repeated warnings that this constitutes a breach of RSPO membership requirements.
In 2015, RSPO responded to this issue by suspending and terminating more than 100 members fornon-submission of the ACOP, sending a clear message that all members must be accountable to theirstakeholders and respect RSPO rules.
To allow stakeholders to benchmark performance, RSPO has also developed the Sustainable Palm OilTransparency Tool in partnership with the Zoological Society of London (ZSL), one of our environmental
NGO members. With this tool, which includes RSPO members and non-members, financial institutions,palm oil buyers and civil society organisations can compare the largest palm oil growers on theirtransparency, commitments and performance. When the tool was launched at RT12, we were pleased tonote that RSPO members performed significantly better than non-RSPO members.

PHOTO CREDIT: RSPO/ JONATHAN PERUGIARSPO IMPACT UPDATE 201525

NEW INITIATIVES AND CHALLENGES

haze insoutheast asia

The haze originating primarily from fires in Kalimantan and Sumatra has been a scourge to the residents ofsurrounding countries for many years, and palm oil companies are often identified as the main problem.
In 2014, RSPO decided to take an active role in monitoring fires, identifying fire risks and enabling fire
prevention.
Our main goal was to ensure that RSPO members were helping to improve the situation, rather
than contributing to the problem. The first step was to partner with the World Resources Instituteto create a map that makes the palm oil supply chain more transparent. The map, accessible atwww.globalforestwatch.org, shows land concessions granted by governments, deforestation (andreforestation), active fires, and plantations that have been certified as sustainable.
Between 1 July 2014 and 30 June 2015, there were 229 fire alerts reported in RSPO certified concession
areas globally and 34 were high-confidence alerts. These fire alerts occurred in 13 companies'
concessions in Indonesia and Papua New Guinea.
RSPO will continue to spread the message that action can be taken to prevent fires. Beyond our
promotion and sharing of best management practice, we are supportive of the Singapore-based civilsociety campaign ‘X the Haze’ and we are engaging with regulators across the region.

26

RSPO IMPACT UPDATE 2015

OUR IMPACT IN
NUMBERS: BASE DATACERTIFIED PRODUCTION, AREA AND SALES

Certificationby country

Certifiedarea (Ha)Production(planted)area (Ha)HCV
area (Ha)

Total
CSPO
(tonnes)

Total
CSPK
(tonnes)Total

3,280,474

2,748,064

144,164

12,623,139

2,883,200

Brazil

113,342

50,11863,224

180,891

37,564

Cambodia

24,843

14,947

2

26,2204,899

Colombia

18,00915,820068,205

15,412

Ecuador

3,916

3,916

0

7,000

3,500

Ghana

20,826

13,461852

25,7605,924

Guatemala

10,1437,989

45

52,8704,100

Indonesia

1,525,734

1,283,357

64,1396,444,156

1,443,526

Ivory Coast

9,323

9,323

0

4,486

1,090

Madagascar

2,107

1,227

880

850

440

1,363,518

1,183,212

6,523

5,105,806

1,244,996

Papua New Guinea

162,427

141,611

7,591

630,278

102,692

Solomon Islands

9,084

7,475

0

31,853

7,786

Thailand

17,203

15,607908

44,764

11,271

2015*

2014

2013

2012

2011

Malaysia

PRODUCTION AREA

2,748,064

2,539,447

1,978,110

1,526,273

1,130,969

CERTIFIED AREA

3,280,474

3,006,349

2,653,058

2,105,433

1,299,891

CSPO SUPPLY

NA

5,276,064

8,735,843

6,724,236

4,798,512

CSPK SUPPLY

NA

1,214,686

2,030,746

1,570,070

1,111,998

CSPO SALES THROUGH SG/MBNA

2,432,258

1,551,017

984,138

831,010CSPO SALES THROUGH B&C

NA

2,916,408

2,962,256

2,495,277

1,659,516

TOTAL CSPO SALES

NA

5,348,666

4,513,273

3,479,415

2,490,526* Sales and supply can only be calculated at year-end.

RSPO IMPACT UPDATE 201527

OUR IMPACT IN
NUMBERS: BASE DATA

2015

2014

2013

2012

2011

2,282

1,631

1,178

838

558

Membership
Total

By country

United Kingdom

330

200

131

106

76

Germany

279

208

147

97

38

Netherlands

146

119

92

69

49

Malaysia

109

117

95

87

77

Indonesia

103

109

88

70

48

France

127

106

86

73

57

United States

138

89

70

46

29

Belgium

89

62

44

24

21

Australia

80

53

0

0

0

Italy

113

52

29

0

0

Others

768

516

396

266

163

Ordinary

1,151

991

829

695

505

Associate

1,032

540

309

142

64

Affiliate

99

100

103

104

93

2015

2014

TOTAL

300

181

MANUFACTURERS

128

79

PROCESSORS & TRADERS

77

51

SUPPLY CHAIN ASSOCIATES

77

36

RETAILERS99GROWERS

7

6

SUPPLY CHAIN GROUP MANAGERS

2-

GERMANY54

40

MALAYSIA

28

21

FRANCE

27

20

UNITED STATES

24

16

UNITED KINGDOM

24

17

THE NETHERLANDS

24

15

BELGIUM

22

11

INDONESIA15

5

POLAND

14

5

AUSTRALIA

104OTHERS

58

27

By category

Trademark28

RSPO IMPACT UPDATE 2015

OUR IMPACT IN
NUMBERS: BASE DATA

2015

2014

Indonesia

332,372

828,470

Liberia

48,47098,485-69,975

New planting procedures

Cameroon
Papua New Guinea
NEW PLANTING
Malaysia
PROCEDURES
Gabon(NPP) AREA
(Ha BY
Cambodia
COUNTRY)
Nigeria-

67,1793558-

23,78051,178-

10,719

-

5,594

-

4,145

Ghana

2,240

3,715

Brazil

7,448

1,223

Costa Rica

RSPO IMPACT UPDATE 2015

29

GLOSSARYBest Management Practice (BMP): Practicalguidelines to enhance oil palm management

ISEAL Alliance: Global membershipassociation for sustainability standards

Book and Claim (B&C): The book and claim
system allows for the transfer of RSPO
certified oil palm through tradable certificatesto actors in the palm oil supply chain

Mass balance (MB): Supply chain modelthat allows certified claims to be transferredfrom one oil palm product to another either
through physical blending or administratively
under strictly controlled circumstances

Certification Body (CB): Organisation thatprovides third party auditing and certification
services related to a product, process or system,
and which can issue a certificate of compliance
Certified Sustainable Palm oil (CSPO): Palmoil that has been grown on a plantationthat has been managed and certified
in accordance with the RSPO P&C
Crude palm oil (CPO): A type of
unrefined vegetable oil obtained fromthe fruit of the oil palm tree
Fresh Fruit bunch (FFB): Bunch harvested
from the oil palm tree. Each bunch canweigh from 5 to 50 kilogrammes and cancontain 1,500 or more individual fruits

New Planting Procedures (NPP): Provides
guidance on how and under what conditions
new oil palm plantings should be carried out
Paraquat: The trade name for N,N′-dimethyl4,4′-bipyridinium dichloride, the organic
compound with the formula [(C5H4N)2]Cl2.
It is one of the most widely used herbicides,
used to destroy green plant tissue on contact
PalmGHG Calculator: Developed by the Greenhouse
Gas Working Group 2 of RSPO to estimate andmonitor net greenhouse gas emissions

Free, prior and informed consent (FPIC):
A principle that a community has the rightto give or withhold its consent to proposed
projects that may affect the lands theycustomarily own, occupy or otherwise use

Palm kernel oil (PKO): Oil extracted fromthe kernel or core of the palm fruit

Hectares (Ha): A unit of measurement equivalent
to 10,000 square metres, or 100m x 100m

RSPO Principles & Criteria (P&C): Guidelines
on how palm oil companies and growers
should produce palm oil sustainably. It
forms the basis of company assessment forcertification and is reviewed every five years

High confidence fire alerts: World Resources
Institute (WRI) is employing a recommendation
for detecting forest clearing fires (described in
Morton and Defries, 2008), identifying fires witha Brightness value ≥330 Kelvin and a Confidence
value ≥ 30% to indicate fires that have a highconfidence for being forest-clearing fires. Low
confidence fires are lower intensity fires that
could either be from non-forest-clearing fire
activity (clearing fields or grass burning), or
could be older fires that have decreased inintensity (smoldering rather than flaming fires)
High Conservation Values (HCV): The concept ofHigh Conservation Values Forest (HCVF) was firstdeveloped by the Forest Stewardship Council (FSC)
in 1999 as their 9th principle. The FSC defined HCVF
as forests of outstanding and critical importancedue to their environmental, socio-economic,
cultural, biodiversity and landscape value

30

Native customary rights (NCR): Refers
to the communal rights of and may
only be claimed by a native

RSPO IMPACT UPDATE 2015

Peat: Peat is an accumulation of rotting plantmaterial, forming in wetlands or peatlands

Segregation (SG): The Segregation (SG) supply
chain model assures that RSPO certified oilpalm products delivered to the end user
come only from RSPO certified sources
Smallholders: Farmers growing oil palm
on a plantation of less than 50 hectares
TBP: Time Bound Plans

CONTACT RSPO
We value the feedback of our stakeholders. If you
have questions about this report or our impact,please contact:
Impacts Department
Roundtable on Sustainable Palm Oil (RSPO)
Unit A-37-1, Level 37
Tower A, Menara UOA Bangsar
No 5 Jalan Bangsar Utama 1,
59000 Kuala Lumpur
Malaysia
Tel: +603 2302 1500
Email: rspo@rspo.org

RSPO IMPACT UPDATE 2015

31

IMPACT UPDATE 2015

Impacts Department

RSPO Secretariat

Unit A-37-1, Menara UOA Bangsar
No.5 Jalan Bangsar Utama 1
59000 Kuala Lumpur
Malaysia
T: +603 2302 1500
E: rspo@rspo.org